DUBLIN based Tinsley Wire has emerged as the buyer of the stock and plant of Barlo's IRG Wire subsidiary in Limerick.
Barlo has agreed to sell the stock and plant to the Finglas based company for about £1.4 million.
Tinsley will pay just over £700,000 for the stock and about £600,000 for the plant of the wire fencing business formerly known as Earls Wire, according to reliable sources.
Tinsley Wire managing director Mr Fintan Devine confirmed that his company was acquiring the stock and plant. Declining to discuss the figures, he said the final purchase price would be based on a valuation of the assets at the end of June.
Barlo chief executive Dr Tony Mullins declined to discuss the details of the sale yesterday, citing a confidentiality agreement with the buyer. Tinsley is not buying the IRG premises, located on Dock Road in Limerick.
Tinsley Wire is a subsidiary of Tinsley Wire of Sheffield. The company plans to move the Limerick stock and plant to its 100,000 sq ft premises in Finglas in Dublin where 65 people are employed. Five or six skilled workers from the 20 strong IRG workforce will be offered jobs at Finglas, according to Mr Devine.
Last week, Barlo reported a 37 per cent drop in pre-tax profits to £3.5 million for the year to end March after a £5.95 million restructuring charge. At that time the company said the sale of IRG would ultimately generate cash of £2.2 million when "related assets are realised". Related assets are understood to include the factory building.
The sale of stock and plant will generate a premium of £0.5 million over the £0.9 million value of the net assets being sold, according to Barlo.
Barlo acquired the Limerick operation in 1992 after a hostile bid for its parent, the Newbridge based cordage, plastics and wire fencing company, IRG.
Barlo had approached IRG about a possible merger of the two companies.
Dr Mullins said the sale of IRG reflected the group's strategy of concentrating on areas where it has scale, integrated operations and positions in a number of European markets. Barlo was concentrating on radiators and sheet plastics, he said.
